6 mistakes in family financial management

Family financial management  is an essential skill for young couples to master, especially those who are pregnant and parenting for the first time. In fact, financial management not only affects the relationship between husband and wife, but also has a direct impact on the future of the children.

Here are 6 common mistakes young couples need to avoid in terms of family financial management.

1. No clear plan

You think: "Oh, just married, let's take it easy for a while..." and just like that, there's a coin. The inevitable consequence is that after the first year of living together, many couples are believed to be preparing to "step up" as new parents to find out that there is no reserve fund, no money to save for their children's future. . Therefore, to ensure the economy of the whole family, right after the wedding, the couple should immediately set up a financial plan. The two of you need to control your spending and have specific goals to work towards.

2. There is no reserve fund for risk incidents

Life is never smooth. Any unexpected events can happen such as unemployment, income loss, illness, etc. Therefore, when preparing to welcome a new family member, you need to build a reserve fund to be able to Make sure to always give your child the best, even if unexpected things happen.

3. Disagreement on spending habits and plans

If the couple does not agree on spending habits and plans, one person will always feel "resentful", "resentful" with the other's way of spending. You also can't save money if your husband keeps swinging his arms over his forehead. Therefore, the first thing to do is for the couple to agree on expenses and family savings funds. For example, if you want to have children, you and your spouse need to plan to set up a reserve fund specifically for your child, such as choosing a life insurance plan that will accompany the child from the time he is in the womb until the child is an adult.

4. Not dividing financial responsibilities between husband and wife

After the wedding day, the couple needs to discuss and define financial responsibilities, for example: the amount to contribute to the family fund (in line with each person's income); or assuming the husband pays the rent, electricity and water, the wife will be responsible for the market, savings, etc. If the financial responsibility is not divided from the beginning, when large sums of money are needed, You and your wife will be completely passive, only "bewilderedly looking at each other".

5. Not educating children about the value of money

Young children need to know the value of money and how to save from a young age. Depending on your child's age, you can turn this into fun games, so that your baby can absorb and form concepts: Why save? How can I save?

6. Failing to prepare financial resources for their children's education

You need to start building your savings from the moment you are pregnant or when your baby is born to ensure that your child is always optimally eligible for education until at least 18 years of age.

It is helpful to have a long-term financial plan for your child's education as early as possible, as this is like a "armor" to help you protect your child, no matter how volatile life may be. In developed countries around the world, young parents often choose to buy a  long-term life insurance product  , such as a safe and effective way to protect their children, ensuring that their children can pursue their dreams with peace of mind.

Young couples in Vietnam can also refer to insurance products that are designed to be very practical.

Insurance products as an accumulation for children from the time they are in the womb until they graduate from college. More importantly, insurance products are also a solid way to protect  the children's future , even in the event that something unexpected happens to parents while the children have not yet grown up.

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